Credit Builder Loans

Building your credit is important. If you ever plan on applying for a car loan or credit card, you'll need to prove you are responsible when it comes to paying off your debt. That's where your credit score comes in. The higher your credit score, the more opportunities you'll have to get a loan at a low rate.

Whether you're wondering how to establish credit or you'd like to improve your existing score, contact us today to learn about our loans to establish credit. With the Salem Seaport Credit Builder Loan, the money you borrow is secured in your savings account for the term of the loan and dividends are paid on the money while you make payments and establish your credit. Once you have successfully paid the loan in full, the money becomes available in your account. Maintaining scheduled payments for a minimum of six months will allow the payment history to be reflected on your credit report and may help you improve your score.

Higher credit scores combined with high-value, low-rate products and services from Sale Seaport Credit Union can lead to lower rates and personal savings for you and your family. Read why the New York Times thinks Credit Builder Loans are such a great product, then apply for yours.

Credit Builder Loan Overview

The Credit Builder Loan is specifically designed to help you build or rebuild your credit history as you build up to $3,000 in savings plus dividends. Here's how it works:

  • The amount you borrow is deposited into a Salem Seaport Credit Union savings account that you cannot touch until the loan is repaid.
  • You make regular on time payments on the loan.
  • As you repay on time, you establish a positive payment history that we report to the credit bureaus.*
  • Based on those reports, your credit history and credit score improves over time.
  • A higher credit score translates into better rates on future loans. It can also have a positive impact obtaining insurance and certain jobs that consider credit history.
  • When you finish repaying the loan, you'll have the full balance in the Salem Seaport Savings Account, including dividends, to use as you please – for a down payment, education, home improvements, anything.

Credit Builder Features

  • Loan amounts from $500 to $3,000
  • Terms from 12 to 24 Months
  • Loan funds in the Salem Seaport Credit Union Savings account earn dividends at the published dividend rate for this account
  • Loan interest rate is fixed at 5% Annual Percentage Rate (APR)
  • After a minimum of 12 months of satisfactory payments, you'll receive a .25% discount off the interest rate on your next qualified consumer loan.**

Example loan payment schedule—A $1,000 Credit Builder Loan with an APR of 5.00% for 18 months has an approximate monthly payment of $57.79.

Apply Now
Apply online or visit our Lafayette Street office (across from Salem State University). You can call us with questions at 978.744.1153 or email us at

* Satisfactory payments are those received by Salem Seaport Credit Union on or before the due date for at least the scheduled payment amount.

** Real Estate and Credit Card loans do not qualify for the discount. The granting of a Credit Builder Loan does not guarantee future loans. All loans are subject to credit approval.